BioGaia AB (publ) Q2 2025 Earnings | 07/18/2025

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BioGaia AB (publ) released its Q2 2025 results on July 18, 2025, reporting a modest top-line increase but with challenges to profitability driven by increased investments in marketing and strategic expansion. Net sales for the second quarter were SEK 404.7 million, up 5% compared to the prior year (or up 13.2% excluding currency effects), fueled by robust demand in the Americas and the APAC region. The Pediatrics segment saw net sales of SEK 310.1 million (a 2% increase, or 9% after currency adjustments), while the Adult Health segment posted a strong 15% rise in sales to SEK 89.8 million, boosted by higher demand for flagship brands such as BioGaia Gastrus and Protectis tablets. Growth was especially notable in the USA, Indonesia, and Spain. Despite gross margin remaining solid at 73%, the company’s operating profit declined 20% to SEK 108.3 million, with an operating margin of 27% versus 35% a year ago. This margin contraction reflects a 25% rise in operating expenses, mostly attributable to stepped-up sales and marketing investment in key growth markets and new direct sales channels. Profit after tax fell 21% to SEK 87.9 million, corresponding to earnings per share of SEK 0.87—down from SEK 1.10 last year. Cash flow for the quarter was negative at SEK -623.8 million, although the company maintained a healthy cash position of SEK 622.3 million at the period’s end. Key operational developments in Q2 2025 included the expansion into the Netherlands with a digital-first sales approach, as well as the launch of BioGaia New Sciences AB—a subsidiary focused on advancing microbiome research. The Americas region led growth with a 5% sales increase in Q2 (21% year-to-date), powered by ongoing strength in the US and strong performance in Chile and Guatemala. APAC delivered a 15% quarterly sales increase, particularly in Indonesia, while EMEA revenues were stable; lower sales in France and Turkey were offset by direct distribution and new partnerships. CEO Theresa Agnew emphasized that the company’s results reflect renewed demand for both pediatric and adult probiotic products, ongoing expansion of direct-to-consumer channels, and the impact of deliberate investments to seed long-term growth. She also highlighted new clinical research on BioGaia Protectis, which demonstrated a 54% reduction in antibiotic-associated diarrhea among children in recent trials, further validating the science-backed value proposition of BioGaia’s core portfolio. BioGaia was recognized by TIME Magazine as one of the world’s top 500 companies for sustainable growth, highlighting its continued commitment to responsible business practices, innovative packaging, and ESG transparency. Looking forward, management reaffirmed its growth strategy, focusing on brand-building, direct business expansion especially in digital channels, and further innovation in both the core and emerging markets. These investments are expected to drive market share gains as well as enhanced global leadership in science-driven probiotics. About Inside Ticker: For comprehensive earnings reviews, sector commentary, and in-depth news on BioGaia AB (publ) and global healthcare innovators, follow Inside Ticker and visit InsideTicker.com for exclusive insights and real-time updates. Hashtags: #BioGaia #Q22025 #Earnings #FinancialResults #Probiotics #Pediatrics #AdultHealth #GutHealth #SalesGrowth #Americas #APAC #EMEA #DirecttoConsumer #ScienceBacked #Innovation #Microbiome #Sustainability #ESG #ClinicalResearch #CashFlow #OperatingProfit #InsideTicker #BusinessUpdate #Sweden #Healthcare #InvestorUpdate #Q2Results #Pharma #GrowthStrategy #BrandBuilding #GlobalExpansion